Open interest in Bitcoin (BTC) futures reached $5.2 billion on the world’s derivatives giant Chicago Mercantile Exchange (CME), $200 million shy of the late October 2021 high.
Open interest in CME’s Bitcoin futures grew from $3.63 billion to $5.20 billion in the past 30 days, according to Coinglass data. The open surge in interest ran parallel to Bitcoin’s 26% gain over the same period, with Bitcoin now trading at just over $44,000.
From October 1 to 21, 2021, open interest in CME’s Bitcoin futures increased from $1.46 billion to $5.45 billion.
The rapid rise in open interest also coincided with a sharp price jump for Bitcoin, which grew from $45,000 to $66,000.
IG Australia analyst Tony Sycamore told Cointelegraph that the open interest uptick reflects a renewed interest in Bitcoin, but it does not explain how CME traders are positioned.
Sycamore pointed to CME’s Nov. 28 of the Commodities Futures Trading Commission, showing that the “big players” on its platform were sitting net short at the time, with 20,724 short positions compared to 18,979 longs, Sycamore explained.
Until the latest CME report comes out on Tuesday, December 12, Sycamore said investors won’t be able to see exactly how CME players are positioned.
“What we don’t see right now is when the big players have gone from being net short to net long, Sycamore said. “When we see the market go long, you worry about a snapback. The market we saw last week was short, so I don’t think we’re at that point yet. “
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The big uptick in Bitcoin’s price is driven by more than speculation around the SEC’s potential approval of a roster of spot ETF products, Sycamore added. A decision on ETFs is pinned for early January.
“I think there needs to be more drive to it now. It’s not just the ETF or the emergence of speculation anymore. It’s starting to take on a life of its own.”
Sycamore says that the recent rally in Bitcoin can be more closely attributed to the crypto’s relationship with the macro environment, seeing the Federal Reserve’s signal to start cutting interest rates as a more significant driver of price action.
In November, CME acquired the highest spot in Bitcoin futures open interest from Binance, which many interpreted as a signal that traditional financial institutions are beginning to show a greater appetite for the products. in crypto.
Many analysts believe that the approval of the spot ETF will result in a rapid increase in the price of Bitcoin, but not everyone is convinced that the current rally can be maintained, with some predicting a ” sell the news” style event in the days and weeks after a potential approval.
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